This Alert summarizes all the material amendments to Chapter 105 of the North Carolina General Statutes ratified to date during the General Assembly’s 2024 short session....more
The North Carolina General Assembly ended its 2022 short session on July 1. While the legislature is scheduled to reconvene on July 26, no additional tax legislation is expected to be considered....more
7/8/2022
/ Captive Insurance Company ,
Coronavirus/COVID-19 ,
Corporate Taxes ,
Franchise Taxes ,
General Assembly ,
Income Taxes ,
Payroll Taxes ,
Pending Legislation ,
Property Tax ,
Sales Tax ,
State and Local Government ,
State Budgets ,
State Taxes ,
Wildlife Protection
On November 15, 2021, after months of negotiations and four and a half months into the new fiscal year, the North Carolina General Assembly released Senate Bill 105, its proposed budget bill (the "Bill"). Both Chambers...more
11/19/2021
/ Corporate Taxes ,
General Assembly ,
Governor Cooper ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Pass-Through Entities ,
Popular ,
Property Tax ,
Sales Tax ,
State Budgets ,
State Legislatures ,
State Taxes ,
Tax Credits
The North Carolina General Assembly concluded the regular business of its 2020 session on Friday, June 26, 2020. While the session will not formally adjourn until September 3, 2020, the only business expected to be considered...more
House Bill 1080, containing the Revenue Laws Study Committee’s recommended tax changes, was introduced in the General Assembly on May 14, 2020. The bill has passed its first reading and is now in committee. This Alert...more
On March 27, 2020 President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (HR 748) (“CARES Act”) shortly after the bill cleared the House. The Senate had passed the measure the day before....more
This Alert summarizes the more significant tax provisions enacted by the North Carolina General Assembly in 2019. The most important tax changes were originally included in House Bill 966, the 2019 Appropriations Act (the...more
11/12/2019
/ Apportionment ,
Appropriations Bill ,
Corporate Taxes ,
Department of Revenue ,
Digital Marketplace ,
E-Commerce ,
Franchise Taxes ,
General Assembly ,
Governor Vetoes ,
Income Taxes ,
Online Marketplace ,
Pending Legislation ,
Sales Tax ,
State Budgets ,
Tax Code ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions
A previous Alert dated April 9th, summarized the North Carolina Senate’s original tax plan for 2019 as set forth in the first edition of Senate Bill 622. Since then, the House passed its version of the 2019 appropriations...more
5/20/2019
/ Appropriations Bill ,
Corporate Taxes ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Property Tax ,
Sales & Use Tax ,
South Dakota v. Wayfair ,
Tax Cuts and Jobs Act ,
Tax Liability
The “five-year active trade or business” or “ATB” requirement of section 355 is notorious for defeating many otherwise promising tax-free spin-off transactions. Consider the following common scenarios...
Originally...more
Previous Alerts dated April 17 and May 15 described the North Carolina draft tax legislation developed by the Revenue Laws Study Committee for introduction in the General Assembly’s short session, which began on Wednesday....more
On April 11, 2018, the General Assembly’s Revenue Laws Study Committee released a draft tax bill for possible introduction in the legislative session that convenes May 16. This Alert provides a summary of the more important...more
4/18/2018
/ Agricultural Workers ,
Breweries ,
Captive Insurance Company ,
Corporate Taxes ,
Federal Taxes ,
Foreign Derived Intangible Income (FDII) ,
Franchise Taxes ,
GAAP ,
GILTI tax ,
Historical Rehabilitation ,
Income Taxes ,
Intangible Property ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Opportunity Zones ,
Partnerships ,
Prescription Drugs ,
Property Tax ,
Proposed Legislation ,
Reconciliation ,
Repatriation ,
Sales & Use Tax ,
Sales Factor ,
Service Contracts ,
Suspensions ,
Tax Credits ,
Tax Exemptions ,
Tax Extensions ,
Tax Legislation ,
Tax Liability ,
Tax Returns ,
Wineries
Two previous Tax Alerts, Tax Provisions in the 2017 Budget Bill (June 20, 2017) and Tax Legislation Enacted During the Regular Session of the 2017 North Carolina General Assembly (June 30, 2017), summarized the major tax...more
9/15/2017
/ Corporate Taxes ,
Franchise Taxes ,
Historical Rehabilitation ,
Holding Companies ,
Income Apportionment ,
Income Taxes ,
Non-Resident Income Taxes ,
Property Tax ,
Sales Tax ,
Tax Credits ,
Tax Deductions
A previous Tax Alert (June 20, 2017) summarized the tax provisions in the North Carolina 2017 budget bill (the Appropriations Act of 2017) as passed by the General Assembly. The Governor later vetoed the budget bill, but the...more
The General Assembly released today the Proposed Conference Committee Substitute (the “Conference Bill”) for Senate Bill 257, the state budget bill. The Conference Bill is expected to be approved by the General Assembly later...more
This Alert summarizes the major tax provisions included in legislation passed by the 2015-2016 North Carolina General Assembly in its short session, which concluded earlier this month.
The most widely discussed tax...more
7/12/2016
/ Corporate Taxes ,
Franchise Taxes ,
General Assembly ,
Governor McCrory ,
New Legislation ,
Pending Legislation ,
Property Tax ,
Protecting Americans from Tax Hikes (PATH) Act ,
Sales Tax ,
State Taxes ,
Tax Deductions ,
Tax Refunds
In the last two years, the General Assembly has enacted major changes to North Carolina’s corporate income tax law, including significant rate reductions, elimination of numerous incentive credits and replacement of North...more
North Carolina’s General Assembly is continuing the overhaul of the State’s tax system that it began in 2013. That year, the General Assembly slashed corporate and individual tax rates, eliminated many income tax deductions...more
9/25/2015
/ Corporate Taxes ,
Franchise Taxes ,
General Assembly ,
Income Taxes ,
Internal Revenue Code (IRC) ,
New Legislation ,
Property Tax ,
Proposed Legislation ,
Sales & Use Tax ,
Tax Credits ,
Tax Reform ,
Wage Statements
An earlier Tax Alert discussed the possibility that North Carolina would adopt the single sales factor method of apportioning the business income of multi-state corporations. During the current legislative session, single...more